Albertsons Private Label Sales Expected to Reach 30% of Business
Albertsons is confident that its private label sales will grow to represent up to 30% of its overall business, as the supermarket chain continues to focus on catering to price-conscious shoppers. CEO Susan Morris shared this optimistic outlook during Albertsons’ recent second-quarter earnings call.
During the latest fiscal quarter, Albertsons experienced growth in unit sales of its own brands, thanks in part to the introduction of new products across various categories that offer exceptional value to customers.
Morris emphasized that Albertsons is committed to investing in strategies such as enhanced loyalty programs, personalized promotions, competitive pricing initiatives, and vendor support. The company also reduced prices in select categories and markets to help customers save money.
With its private label penetration currently at around 25%, Albertsons aims to increase this figure based on recent efforts. Private label penetration stood at 25.7% in the first fiscal quarter of 2025 and 25.4% in the previous fiscal year.
These initiatives have not only boosted customer engagement and loyalty but have also contributed to improved margins and merchandising mix for Albertsons.
By enhancing the visibility and appeal of its own brands, Albertsons anticipates significant growth in this key area of its business, reinforcing its competitive edge and long-term profitability.
During the second quarter, customers prioritized saving money by utilizing coupons and streamlining their shopping lists. Additionally, there was a noticeable shift towards healthier eating habits, driving sales of fresh meat and produce – products that offer favorable margins for Albertsons.
Morris acknowledged the ongoing pressure to meet customer demands within budget constraints, highlighting the company’s dedication to adapting to market needs effectively.